How to Use the Time-Series Method to Predict and Forecast Sales Revenue

by | Jul 17, 2014 | Education

10555073_lAny sales management consultant in Chicago will tell you that no matter what size your company might be it is imperative to learn how to predict and forecast sales revenue. A method that many companies use is the time-series method. You can introduce this method into your forecasting at any time by building your data and the information for reference.

What is the time-series method?
This method is designed to use your sales data to track sales in intervals. You can choose the length of the intervals from as little as hourly or as long as by the year. You collect data in order to have a record as a reference to look for patterns. At first you track your sales and then use qualitative data to provide you with information for guestimates and forecasting. The more data you collect the better equipped you will then become to begin using quantitative data for more accurate forecasting.

Keeping Track
Once you begin your data collection you will have a history that will allow you to keep track of what has occurred in order to spot trends that will allow you to determine what might be. You will use the trends and cycles as well as the seasons and also look for any irregularities in the data. Each of these components work together to offer insight and clues that help you make accurate forecasts and identify cycles. Cycles appear when you witness reoccurring trends. You can use seasonal components by watching for similar trends at specific times of year. This is common with things such as selling more snow blowers in December and bathing suits in the summer. Irregularities may not necessarily help with predictions but will help explain sudden drops or rises in sales.

Purpose and Goals of the Time-Series Method
A time series analysis will allow you to identify patterns to watch for seasonal variations as well as trends. You will get a better understanding of your trends and cycles making it easier to forecast with prediction of short term trends thanks to previous patterns. You can also learn about issues that might cause future challenges for expected trends through irregularities that might have occurred such as snow storms, strikes and a shortage of certain material required to make your product. You can also use the information to look for quality control issues due to deviations in sales for a certain product, model or size. The time-series method is just one of the areas a sales management consultant in Chicago can help your team improve their performance.

If you are considering working with a sales management consultant in Chicago to improve performance, The Sales Coaching Institute has more than 25 years of experience. Get in touch with them.

Recent Articles



Similar Posts